Oil could plunge to $40 in 2025 if OPEC unwinds voluntary production cuts, analysts say
PUBLISHED TUE, NOV 12 2024 10:35 PM EST
Lee Ying Shan
@LEEYINGSHAN@IN/YING-SHAN-LEE
WATCH LIVE
KEY POINTS
- Oil prices may see a drastic fall in the event that OPEC+ unwinds its existing output cuts, said market watchers.
- A decline to $40 a barrel would mean around 40% erasure off current crude prices.
- However, the alliance is more likely to opt for a gradual unwinding early next year, compared to a full scale and immediate one, the analysts said.
A pump jack in Midland, Texas, US, on Thursday, Oct. 3, 2024.
Anthony Prieto | Bloomberg | Getty Images
Oil prices may see a drastic fall in the event that oil alliance OPEC+ unwinds its existing output cuts, said market watchers who are predicting a bearish year ahead for crude.
"There is more fear about 2025's oil prices than there has been since years — any year I can remember, since the Arab Spring," said Tom Kloza, global head of energy analysis at OPIS, an oil price reporting agency.